TECUMSEH — An additional 200 jobs are anticipated in the next seven years as a result of the latest expansion of Van-Rob Tecumseh, formerly Lenawee Stamping Corp.

On a unanimous vote Monday, the Tecumseh City Council approved a seven-year, 100 percent tax abatement on new equipment that will be added in the next seven years. City manager Kevin Welch said the action by the council on the abatement is different than previous such requests, which have traditionally been 50 percent abatements for 12 years. The change was necessitated after the Michigan Legislature did away with the personal property tax on businesses.

"This opens the door for Van-Rob to bring more work into their plant. This will bring in other projects," Welch said. "They have always under-promised and over-delivered. They probably have more employees in the plant than it was designed for."

When the project was first announced in October, Welch said the incentive was being done under a public act that covers a specific time frame instead of the usual act that addresses a specific project. He said this expansion, anticipated to be in the $10 million to $20 million range, is being developed over a seven-year period.

City officials will sign the agreement with Van-Rob once the incentive package from the state of Michigan is approved, Welch said. The project will result in an expansion of the building to accommodate the new production lines, he said.

The city and state are competing with other states, notably Texas, on such industrial projects, Welch said. Councilman Ron Wimple asked if the city would be able to monitor the company to make certain it creates the number of jobs it promises.

"I'm sure if they say 200 jobs (will be created), it will probably be more," Welch said. "If you don't approve it, they won't bring the jobs here."

Once the incentive package is approved by the Michigan Economic Development Corp., the work is expected to begin. In October, the Van-Rob property was added to the Tecumseh Local Development Finance Authority district.

Adding Van-Rob to the district allows the collection of property tax to help cover the local cost for road upgrades on M-50 (Chicago Boulevard) and Rogers Highway at the facility. Left-turn lanes were added on Rogers and upgraded on Chicago Boulevard to allow for smoother truck traffic onto and exiting the property.

Welch said the company had received a Michigan Economic Growth Authority (MEGA) grant and the city had received a Michigan Department of Transportation grant earlier this year to help pay for the $250,000 project. The local match of $25,000 is being split between the company and the city.